Question from Bossnight390, Am I entitled to receive commission earned up until the date of termination?
Answer from AI:
In general, employees in the United States are entitled to receive any earned wages, including commissions, up until the date of their termination. This is typically governed by state labor laws, which can vary. However, the specifics of your situation, such as the reason for termination and the terms of your employment contract, may affect this.
State Labor Laws
Most states have labor laws that require employers to pay all earned wages at the time of termination. This usually includes commissions, as long as the commission has been “earned” according to the terms of your employment agreement.
Your employment agreement or contract may have specific terms regarding when commissions are considered “earned” and when they are payable. Some contracts may state that commissions are only earned when the sale is finalized or the money is collected, while others may consider a commission earned at the time of sale. If your contract has specific terms regarding commissions, those terms would generally apply.
Termination for Cause
If you are being terminated for cause, such as not turning over a check that a client wrote in your name, your employer may argue that you have forfeited your right to any unpaid commissions. This would depend on the specifics of your employment agreement and state law.
Requesting a Full and Final Statement
You can certainly request a full and final statement of all wages, including commissions, owed to you at the time of termination. However, whether your employer is required to provide this will depend on state law. Some states require employers to provide a final paycheck at the time of termination, while others allow employers a certain amount of time to provide the final paycheck.
It’s important to consult with a legal professional to understand your rights and obligations in your specific situation. They can help you interpret your employment agreement and understand the relevant state labor laws.
For more information, you can refer to the U.S. Department of Labor’s guide to state payday requirements and the U.S. Department of Labor’s information on commissions.